Consultant rates should be negotiated with the project manager on a gross basis – i.e., the total amount paid by EIC to the consultant. For example, if Consultant A is registered for Goods and Services Tax (GST) in Australia and is required to charge EIC 10% GST, the rate negotiated with EIC should be inclusive of the 10% tax. Therefore if the rate agreed with EIC on a project is $66 per hour, the consultant would charge EIC $60 per hour on the invoice + 10% GST ($6).
In most cases, for consultants outside of Australia, EIC should be considered a foreign company and therefore GST or VAT exempt. Consultants in Australia that earn over a certain amount per year will likely be required to charge GST to EIC. EIC is registered for GST in Australia.
All consultants are responsible for complying with the legal, tax and visa requirements of their country of residence. EIC is not an employer and does not withhold or reimburse tax of any form for consultants. As EIC consultants are not exclusive with EIC it is expected that all EIC consultants are engaged or seeking engagement directly with clients as well as through the consortium.